Special schemes: bonded warehouses, EPCG and project imports
Schemes that can defer or reduce duty, and what you must do afterwards.
- These schemes come with conditions and records.
- EPCG needs redemption after the export obligation is met.
- Bonded warehousing lets you defer duty until goods leave.
- A missed condition can bring back the duty.
What is EPCG?
A scheme that lets you import capital goods at lower or zero duty in return for an export obligation.
What is EPCG redemption?
The final step that closes your export obligation.
- File ANF 5B
- DGFT aims to process it within 30 days
- Certification by a CA, CMA or CS is needed
- Keep the records for two years
Did you know? The tea clipper Cutty Sark
Q. What was Cutty Sark? A fast sailing ship launched on 22 November 1869 at Dumbarton, Scotland, built for the China tea trade. Between 1870 and 1877 it carried almost 10 million pounds of tea.
Q. What happened to it? When the Suez Canal opened it moved to other cargo, including more than 45,000 bales of wool from Australia. Today it is a museum ship in Greenwich, London.
Illustration, not a photograph.What is a bonded warehouse?
A licensed warehouse where imported goods are stored without paying duty until they are cleared. warehousing](/warehousing-solutions-for-bonded-goods-compliance-tips/)
- You file a separate Bill of Entry for warehousing. Duty is secured by a bond and is paid when you clear the goods with an Ex-Bond Bill of Entry.
- The rate of duty is the one in force on the date you file the Ex-Bond Bill of Entry (Section 15 of the Customs Act, 1962).
What is project import?
A scheme with concessional duty for goods needed for a specific project.
What if there is a trade dispute or quality complaint?
DGFT has a mechanism for quality complaints and trade disputes.
Not sure how this applies to your shipment? Send us the product and the route. A call or a message is all it takes, and we are with you at every step of the way, whether you are importing or exporting.
Multimodal Logistic Systems Pvt. Ltd., Pune, India. Written by Shankar Jha. We are consultants, not a law firm. This page is general information.